Question 1 Background : Brand Name or Generic? A store would like to know if the

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Question 1 Background :

Brand Name or Generic?

A store would like to know if the number of lower-price generic items they sell daily is higher than the number of higher-price brand name items, on average. To test this claim, for 36 consecutive days, on a daily basis, the store records the number of generic items sold and the number of brand name items sold, and for each day they compute the difference (Generic less Brand Name, or d = # generic items sold - # brand name items sold). This is a paired data scenario, because observations are compared pair-wise for each of the 36 days.

Question 1 Background Brand Name or Generic? A store would like to know if the number of lower-price generic items they sell daily is higher than the number of higher-price brand name items, on average. To test this claim, for 36 consecutive days, on a daily basis, the store records the number of generic items sold and the number of brand name items sold, and for each day they compute the difference Generic ess Brand Name ord : #generic ite s sold brand name e ssoa·This paired data scenario, because observations are compared pair-wise for each of the 36 days

Explanation / Answer

Hypothesis testing for Dependent Samples test is applicable.

Here since the samples are taken every day for both generic and branded items, they fall under dependent sample test because the effect of day will remain constant on them.

Null Hypothesis in this case states that there is no difference in the two populations.

Whereas alternate hypothesis states that they are different.

Now if the sample lies beyond the acceptance region, then it is possible to reject the null hypothesis and accept the alternate.

Out of the two, it can be decided easily by taking the average for the 36 days that which item either generic or branded is sold more.

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